IMF Staff Country Reports

Federated States of Micronesia: Selected Issues and Statistical Appendix

Publication Date:

March 22, 2005

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

This Selected Issues paper on the Federated States of Micronesia (FSM) underlies economic development. Since independence, the FSM has been heavily dependent on assistance from the United States. With government expenditure of more than 60 percent of GDP, the private sector remains underdeveloped, functioning largely as a provider of services to the public sector. Under a comprehensive reform scenario, further budgetary efforts are to be taken, as well as structural reforms. Given the need for fiscal consolidation, tax reform has been the subject of discussion for a number of years, although with little progress to show.

Series:

Country Report No. 2005/103

Subject:

Expenditure Fiscal policy Revenue administration Tax administration core functions Taxes Value-added tax